* BUAD 2647 * W Archibald * Nadal Ltd. . * BUACC5933 * Wah pt.php?attempt=1546716&cmid=1056743 ight Info - Manual Login Link COVID-19 Resources Student Services Celestial Ceramics Ltd, makes high-end, artisan coffee mugs. The controller has prepared the following standard costs per box of mugs (6 mugs per box): Standard Standard Price Standard Cost Quantity (or Rate) per box of (or Hours) mugs Direct Materials 1.7 kg $5.50 / kg $9.35 (clay) Direct Labour 0.5 hours $12.00/hr $6.00 Variable 0.5 hours $3.00/hr $1.50 Overhead Total Standard Cost(per box of mugs) $16.85 The company allocates variable overhead based on direct labour hours. Last month, Celestial Ceramics Ld. produced 1,500 boxes of mugs and incurred the following actual costs: Direct materials: Purchased 2,600 kg of clay at a cost of $5.25 per kilogram. 2,300 kg of clay was used in the production of the 1,500 boxes of mugs. Bi e o Hor X M BUAD 264T X W Archibald X W Nadal Ltd. X 9 BUACC5933 X W How may quiz/attempt.php?attempt=1546716&cmid1056743 - Copyright Info - Manual Login Link COVID 19 Resources Student Services hours. Last month, Celestial Ceramics Ld. produced 1,500 boxes of mugs and incurred the following actual costs: Direct materials: Purchased 2,600 kg of clay at a cost of $5.25 per kilogram. 2,300 kg of clay was used in the production of the 1,500 boxes of mugs. Direct labour: 760 hours worked for a total cost of $9,500 Variable overhead: Total cost was $2,500. Required: a) Calculate the direct materials price and quantity variances. Label your variances and indicate if favourable or unfavourable, (4 marks) b) Calculate the direct labour rate and efficiency variances. Label your variances and indicate if favourable or unfavourable. (2 marks) c) Calculate the variable overhead spending and variable overhead efficiency variances. Label your variances and indicate if favourable or unfavourable. (2 marks) 0 Bte